If you're a founder of a startup in the U.S., check out these eight public grants for startups and small businesses. You may be eligible for some of them!
Startup companies can apply for these grant programs only if they meet a particular set of criteria first. The following is a list of 10 government grant programs every startup should research and apply to:
1.Small Business Innovation Research (SBIR)
The SBIR program, created in 1982 to encourage U.S small businesses to engage in R&D projects that benefit the federal government, has helped many startups get their products off the ground.
The SBIR program has three phases: milestones, funding amounts, and duration.phase-1 aims to determine the technical feasibility and commercial potential of an R&D project. continues Phase-I's work if it's successful.Phase-III is when businesses seek commercialization and implement a go-t0-market strategy based on what they've learned. Learn more
How much do you get? During Phase I, businesses receive up to $250,000 in funding
Phases II and III have a budget of about $750,000 each. But there are no follow-on grants awarded during Phase III. Instead, companies may win contracts from government institutions to start selling their products or services.
What are the eligibility criteria?
- Work must be done in the U.S.
- Focus is on performing R&D- Not purchasing equipment, commercializing a technology that has already been developed, or one that has shallow risk and only needs capital
- Company must be for profit, U.S. owned/operated, and under 500 people
Please follow these official instructions to apply.
2. Small Business Technology Transfer (STTR)
The Small Business Technology Transfer program is similar to the SBIR program in many ways. Both grant programs fund small businesses to invest in R&D that federal agencies can benefit from. Still, the STTR requires applicants to work in tandem with a non-profit research institution (only in the first and second Phases of the program).
The SBIR and STTR have similar phases, with minor differences in funding and the time allotted for each Phase.Learn more
What are the eligibility criteria?
- Company must be for profit, U.S. owned/operated, and under 500 people
- Work must be done in the U.S.
- Focus is on performing R&D- Not purchasing equipment, commercializing a technology that has already been developed, or one that has shallow risk and only needs capital
3. BUILD TO SCALE (B2S) PROGRAM
The Build to Scale program aims to build regional economies through scalable startups by hosting a Venture Challenge and Capital Challenge.
Venture Challenge The FY22 Venture Challenge seeks to advance technology-based economic development by strengthening regional innovation ecosystems and promoting the commercialization of new technologies in communities, regions, or combinations of areas.
Capital Challenge The FY22 Capital Challenge program is designed to increase access to capital for technology-based businesses. This challenge offers two funding levels-Form and Deploy-intended to catalyze the development and growth of regional innovation and entrepreneurial ecosystems and address barriers to accessing equity-based capital.Learn more
View the FY20 Industry Challenge grantees here.
What are the funding parameters?
Venture challenge: The foundation offers two grants, up to $750,000 for new projects and companies and $2,000,000 for established and proven programs that need scaling.
Capital challenge: The foundation offers two grants, up to $300,000 to educate and connect investors and up to $750,000 to create, scale, and operate equity-based investment funds (V.C.s)
What are the eligibility criteria? The scope of eligibility for the B2S program is extensive. B2S accepts applications from NGOs, educational institutions, research centers, and for-profit companies. Yet, for-profit companies should apply for grants focused on science, technology, innovation, and entrepreneurship. Please follow this official instructions to apply
4. Business Development program
The U.S. (SBA) Small Business Administration offers a nine-year program called the Business Development program to help socially, and economically disadvantaged individuals start or grow their businesses.
Small businesses participating in the 8(a) program receive training, technical assistance, and other resources to help them grow and succeed. In addition, small businesses owned by Alaska Native corporations, Community Development Corporations, Indian tribes, and Native Hawaiian organizations are eligible to participate in this program.Learn more
What are the eligibility criteria? To qualify for the program, a business must meet the following four criteria:
- Be a small business
- Not have previously participated in the 8(a) program
- Be at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged
- Have a net worth of $750 thousand or less, adjusted gross income of $350 thousand or less, and assets totaling $6 million or less. Please follow this official instructions to apply
5. The US R&D Tax Credit
The R&D tax credit is a U.S government corporate tax solution that allows small and medium-sized businesses to offset their research expenses with corporate taxes.
In 2015, the U.S. federal government extended the law to include payroll taxes. This change truly benefits startups, as they can now benefit from the U.S. tax credit.Learn more
Funding parameters Now, startups can receive up to $250,000 in tax credits that reduce their payroll taxes.
What are the eligibility criteria? If a startup wants to qualify for the US R&D payroll tax credit, it must meet the following qualifications
- The company should have annual revenue of less than $5 million
- the company should have been in business for less than five years
- should conduct qualifying R&D Please follow this official instructions to apply
6. Minority Business Development Agency (MBDA)
The Economic Development Administration's Minority Business Development Agency (MBDA) offers minority-owned businesses and startups a list of revolving small business grants.
MBDA does not provide grants or loans to start or expand your business. MBDA offers grants allocated to organizations that operate Minority Business Centers throughout the United States. These organizations provide vital business consulting, procurement matching, and financial assistance to minority-owned firms. Learn more
7. Rural Energy for America Program grants
The program provides loan financing and grant funding to help farmers and rural small businesses purchase or install renewable energy systems or make energy-efficiency improvements. Farmers can also apply for new equipment, such as tractors or milking machines that use less fuel.Learn more
Who may apply for this program?
- Producers who derive at least 50 percent of their gross income from agricultural operations
- small businesses located in eligible rural areas
Funding parameters Energy efficiency grants are available from $1,500 to $500,000 and can cover up to 25% of the cost of a qualified project.The program offers government-guaranteed loans, covering up to 75% of your project costs. You must cover at least 25% of the price.
Please follow the below official instructions to apply Applications for this program are accepted at your local office.
8. The State Business Incentives Database
Hundreds of state grants are available for small businesses and startups. Check out the State Business Incentives Database to find one that fits your business.
The State Business Incentives Database was created by the Council for Community and Economic Research in 1999. It gives economic developers, business development finance professionals, and researchers a one-stop resource for searching and comparing state incentive programs. Learn more
